Private residential construction-including both single-family and multi-family units-reached a seasonally adjusted annual rate of $295.3 billion in November, according to data released Wednesday by the U.S. Department of Commerce. The current rate is 0.4 percent above the revised October estimate of $294.2 billion.
Spending on new single-family home construction rose 1.3 percent from $141.4 billion in October to $143.3 billion in November. Meanwhile, overall construction spending-including both public and private building-dropped 0.3 percent to $866.0 billion from an October estimate of $868.2 billion. It was the first time overall U.S. construction spending declined in eight months.
The Associated General Contractors of America noted that private construction should grow in the coming months now that uncertainty over the Fiscal Cliff is resolved. Still, tight public budgets could constrain the overall forecast for construction spending.
